While the equities markets are hovering around record highs, with the S&P 500 breaking above 1900 for the first time Tuesday, investors are increasing their hoard of cash and those who are in the markets are favoring overseas stock and related exchange traded fund exposure.

According to a Bank of America Merrill Lynch fund manager survey, investors increased cash and reduced equity positions month-over-month, Financial Times reports.

Average cash levels were 5% of portfolios, the highest since June 2012 and up from 4.8% in April.

While markets reached all-time highs, investors remain cautious, with around one-third of survey respondents wary of Chinese debt defaults and 36% pointing to geopolitical tension.

“Investors are showing belief in the economy but with two big question marks: Are we on the brink of a disruptive event? And why, at this point in the cycle, isn’t this recovery stronger?” Michael Hartnett, chief investment strategist at BofA Merrill Lynch Global Research, said in the Financial Times article.

Nevertheless, European equities still appeal to investors, attracting more investment inflows. About 36% of global asset allocators are overweight Eurozone stocks, up from 30% in April.

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